As the Bangladeshi strike rumbled on (and is set to continue until the 30th of August), little new in the way of ship sales has occurred locally this week. Indeed, most end buyers seemed determined to grab onto the coat tails of the misery currently afflicting the Pakistan and Indian markets offering mindless levels in the hopes of snagging a cheap ship.
Whilst the steel prices have slumped alarmingly in the last month or so (hence the reason for the strike), this has become almost tradition at this time of year in Bangladesh, due to ongoing holidays and monsoon season, that usually results in end buyers picking up a cheaper vessel or two.
The market has almost always recovered going into the fourth quarter of the year as demand and steel prices have historically picked up. Whilst that may not be a certainty this year due to the ongoing crisis concerning the Indian and Pakistani currencies (something that has vet to affect the Bangladeshi Taka), many in the industry are far more optimistic on some form of recovery in the coming month or so.
Source: steel guru. 27 August 2013http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_34/323638.html